GOCL Corporation’s board has decided to accept a line of credit/SBLC facility of $300 million from Union Bank of India (UBI). Out of this, $150 million is to support HGHL Holdings (HGHL), a wholly owned subsidiary of the company based in the United Kingdom for their business operations. The balance line of credit / SBLC Facility of $150 million is kept for future needs.
This SBLC facility will be collaterally secured by the factory land parcel of the company at Hyderabad and also will be guaranteed by Gulf Oil International (GOIL) along with a Cash Deficit Undertaking to UBI. For the aforesaid transactions, GOCL would be entitled to 100 bps per annum plus costs incurred for the SBLC facility, towards commission / charges for providing security for the said SBLC facility. The Board of Directors of the company at its meeting held on January 16, 2020 decided for the same.
GOCL Corporation is engaged in manufacturing industrial explosives, mining products, lubricants, speciality oils and chemicals, active pharma ingredients (bulk drugs) and pharma formulations.
